BACKGROUND

In the early 1970’s, Ray Henderson, Project Manager for the Operating Engineers Pension Trust Fund (PTF), negotiated a memorandum of understanding with El Dorado Irrigation District (EID) to provide water and sewer services to Rancho Murieta. This was necessary to enable the PTF to obtain their white report from the Department of Real Estate to sell property.

By 1980, the majority of directors of the organizations were residents and were looking at Rancho Murieta’s future from an owner’s perspective. EID is a very large water and sewer District headquartered in Placerville, primarily serving residents of El Dorado County. Hookup fees for water and sewer services were paid to EID, with no assurance that the fees being spent by EID would necessarily be for the benefit of Rancho Murieta. On the contrary, there was concern that the customers at Rancho Murieta could become liable for the indebtedness of EID. Property tax revenues were also going out of the County to EID with no guarantee that those revenues would be expended at Rancho Murieta.

In June of 1982, after local registered voters petitioned the County and public hearings were held, the voters approved the formation of the Rancho Murieta Community Services District (District), and elected five (5) directors. Rancho Murieta Association (RMA) supported this concept and advanced the election costs, with the long term objective of having the District become the service provider of everything except street maintenance, in order to preserve the private nature and restricted access into the community.

After several months of negotiations, the District detached from El Dorado Irrigation District and began providing water, sewer, and drainage services in October of 1983. This generated a revenue stream (fees for services) and the District repaid RMA the election costs they had expended on behalf of the District. The property tax revenue formerly going to EID was redirected to the District, and is used to offset some of the administrative costs.